2025 has been the Year of the Tariff. Since he took office, President Trump has unveiled aggressive tariffs on imports from foreign countries, reshaping U.S. trade policy, sending the markets on a roller-coaster ride, and causing uncertainty for companies of all types. Now a new deadline of August 1 looms that could bring higher tariffs on imports from dozens of countries. On this episode, host Mike Townsend is joined by Michelle Gibley, director of international research at the Schwab Center for Financial Research, for a timely discussion of tariffs—what’s in place now, what’s coming next, how they are being used to secure trade deals, and what the potential impact is on inflation, the economy, and the markets. Michelle shares her perspective on why markets reacted so sharply to the “Liberation Day” tariff announcements in April but have mostly ignored the tariff noise since then. They also discuss the ramifications for international stocks, why emerging markets have been outperforming U.S. markets, and where investors looking to expand their international allocation can find opportunities.
Mike also provides updates from Washington on the Fed’s decision to keep the federal funds rate steady, the latest on cryptocurrency legislation, and why a recent fight on Capitol Hill to claw back foreign aid funding could be a worrisome signal for this fall’s effort to fund government operations and avert a disruptive government shutdown.
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Check out Michelle’s recent articles: “Tariffs: Is the Worst Behind Us? ( ” and “Benefits of Emerging Markets Diversification ( .”
IMPORTANT DISCLOSURES
The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.
This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.
All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
Past performance is no guarantee of future results.
Investing involves risk, including loss of principal.
International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.
Cryptocurrency-related products carry a substantial level of risk and are not suitable for all investors. Investments in cryptocurrencies are relatively new, highly speculative, and may be subject to extreme price volatility, illiquidity, and increased risk of loss, including your entire investment in the fund. Spot markets on which cryptocurrencies trade are relatively new and largely unregulated, and therefore, may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments. Some cryptocurrency-related products use futures contracts to attempt to duplicate the performance of an investment in cryptocurrency, which may result in unpredictable pricing, higher transaction costs, and performance that fails to track the price of the reference cryptocurrency as intended.
Commodity-related products carry a high level of risk and are not suitable for all investors.
Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.
Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.
All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.
This information is not intended to be a subst…
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